XCEL FINAL PRACTICE EXAM
QUESTIONS WITH CORRECT
ANSWERS
Medical Expense Insurance would cover - ANSWER-an injury occurring at the
insured's residence
A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) - ANSWER-optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate
coverage at any anniversary or at any premium due date.
Which of these is NOT considered to be a risk factor in life insurance underwriting? -
ANSWER-Number of children
CORRECT: health history, hobbies, occupation
Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
ANSWER-the benefit can be offered as a writer and a specific extra cost or may be
at no cost
CORRECT: the face amount and policy premium are not affected by the payment,
before payment of the benefit is made, specific conditions must exist, such as
suffering from a terminal illness, there may be a dollar amount on the maximum
benefit
The branch of dentistry which deals with the replacement of missing parts is called -
ANSWER-Prosthodontics
Prosthodontics is the branch of dentistry concerned with the design, manufacture,
and fitting of artificial replacements for teeth and other parts of the mouth.
Under long-term care insurance, which of the following MUST an insurer offer to
each policyowner at the time of purchase? - ANSWER-An inflation protection feature
How is a health provider reimbursed if they do NOT have an agreement in place with
the insurance company? - ANSWER-With a usual, customary, and reasonable fee
Which of the following provides Medicare supplement policies? - ANSWER-Private
insurance companies
Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15
with the policy indicating the effective date being May 30. On which date would
Sonya have coverage? - ANSWER-May 30
,The "effective date" is the health insurance coverage start date.
A producer MUST be appointed by the insurer within how many days from the date
the agency contract application is submitted? - ANSWER-15
Which of the following is a reinstatement condition? - ANSWER-proof of insurability
A policyowner may change two policy features on what type of life insurance? -
ANSWER-adjustable life
adjustable life allows the policyowner to change to policy features: premium and face
amount.
A notice of cash surrender value must be sent to a Universal Life policyowner -
ANSWER-at least annually
Which of the following does Coordination of Benefits allow? - ANSWER-allows the
secondary payer to reduce their benefit payments so no more than 100% of the
claim is paid
Small employer group coverage is NOT required to be renewed in each of the
following circumstances EXCEPT - ANSWER-Number of claims exceed threshold
CORRECT: intentional misrepresentation, noncompliance with minimum
participation requirements, small employer insurer no longer offers that type of
coverage
All of these are situations that allow the insurer to NOT renew small employer group
coverage EXCEPT "Number of claims exceed threshold".
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - ANSWER-Full-time nursing care
Home health care is care provided in the insured's home, usually on a part-time
basis.
Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - ANSWER-integrated deductible
All of these are typically sources of underwriting information for life or health
insurance EXCEPT - ANSWER-Disclosure authorization response
CORRECT: Consumer reports, Medical Information Bureau (MIB) reports, Attending
physician's statement (APS)
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which
phase is this annuity in? - ANSWER-Accumulation period
Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss
as - ANSWER-loss of income
, Which of the following individuals is REQUIRED to be licensed as an insurance
counselor in the State of Michigan? - ANSWER-A person providing insurance advice
to a person or business for a fee
A licensee can disclose a consumer's policy account number to all of the following
EXCEPT a - ANSWER-nonaffiliated third party
CORRECT: member in an affinity program that was identified to the consumer upon
entering the program, service provider marketing on behalf of licensee, consumer
reporting agency.
What is the tax liability for employer contributions in Health Savings Accounts
(HSA's)? - ANSWER-No tax payment needed
Employer-paid contributions to Health Savings Accounts are tax-free to the
employee.
A licensee who informs an insured of inaccurate terms, benefits, or advantages of
any policy is committing which of the following violations? - ANSWER-
Misrepresention
what is the primary reason for buying an annuity? - ANSWER-Provide future
economic security
A common exclusion with Vision plans is - ANSWER-lasik surgery
INCLUDED: eyeglass frames, the examination, contact lenses
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss
as all of the following EXCEPT - ANSWER-additional premiums
CORRECT: loss of earnings, out-of-pocket expenses, repair and replacement costs
All of these are considered a financial loss under Chapter 45 of the Michigan
Insurance Code EXCEPT for "additional premiums".
Which policy feature makes a universal life policy different from a whole life policy? -
ANSWER-A flexible premium schedule
An insurer must furnish to a claimant forms for filing proof of loss within ___ days
upon receiving a notice of claim. - ANSWER-15
A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a(n) - ANSWER-guaranteed insurability
rider
In which of the following processes will the insurer oversee the insured's hospital
stay to confirm everything is going according to schedule and that the insured will be
released as planned? - ANSWER-Concurrent review
QUESTIONS WITH CORRECT
ANSWERS
Medical Expense Insurance would cover - ANSWER-an injury occurring at the
insured's residence
A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) - ANSWER-optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate
coverage at any anniversary or at any premium due date.
Which of these is NOT considered to be a risk factor in life insurance underwriting? -
ANSWER-Number of children
CORRECT: health history, hobbies, occupation
Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
ANSWER-the benefit can be offered as a writer and a specific extra cost or may be
at no cost
CORRECT: the face amount and policy premium are not affected by the payment,
before payment of the benefit is made, specific conditions must exist, such as
suffering from a terminal illness, there may be a dollar amount on the maximum
benefit
The branch of dentistry which deals with the replacement of missing parts is called -
ANSWER-Prosthodontics
Prosthodontics is the branch of dentistry concerned with the design, manufacture,
and fitting of artificial replacements for teeth and other parts of the mouth.
Under long-term care insurance, which of the following MUST an insurer offer to
each policyowner at the time of purchase? - ANSWER-An inflation protection feature
How is a health provider reimbursed if they do NOT have an agreement in place with
the insurance company? - ANSWER-With a usual, customary, and reasonable fee
Which of the following provides Medicare supplement policies? - ANSWER-Private
insurance companies
Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15
with the policy indicating the effective date being May 30. On which date would
Sonya have coverage? - ANSWER-May 30
,The "effective date" is the health insurance coverage start date.
A producer MUST be appointed by the insurer within how many days from the date
the agency contract application is submitted? - ANSWER-15
Which of the following is a reinstatement condition? - ANSWER-proof of insurability
A policyowner may change two policy features on what type of life insurance? -
ANSWER-adjustable life
adjustable life allows the policyowner to change to policy features: premium and face
amount.
A notice of cash surrender value must be sent to a Universal Life policyowner -
ANSWER-at least annually
Which of the following does Coordination of Benefits allow? - ANSWER-allows the
secondary payer to reduce their benefit payments so no more than 100% of the
claim is paid
Small employer group coverage is NOT required to be renewed in each of the
following circumstances EXCEPT - ANSWER-Number of claims exceed threshold
CORRECT: intentional misrepresentation, noncompliance with minimum
participation requirements, small employer insurer no longer offers that type of
coverage
All of these are situations that allow the insurer to NOT renew small employer group
coverage EXCEPT "Number of claims exceed threshold".
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - ANSWER-Full-time nursing care
Home health care is care provided in the insured's home, usually on a part-time
basis.
Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - ANSWER-integrated deductible
All of these are typically sources of underwriting information for life or health
insurance EXCEPT - ANSWER-Disclosure authorization response
CORRECT: Consumer reports, Medical Information Bureau (MIB) reports, Attending
physician's statement (APS)
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which
phase is this annuity in? - ANSWER-Accumulation period
Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss
as - ANSWER-loss of income
, Which of the following individuals is REQUIRED to be licensed as an insurance
counselor in the State of Michigan? - ANSWER-A person providing insurance advice
to a person or business for a fee
A licensee can disclose a consumer's policy account number to all of the following
EXCEPT a - ANSWER-nonaffiliated third party
CORRECT: member in an affinity program that was identified to the consumer upon
entering the program, service provider marketing on behalf of licensee, consumer
reporting agency.
What is the tax liability for employer contributions in Health Savings Accounts
(HSA's)? - ANSWER-No tax payment needed
Employer-paid contributions to Health Savings Accounts are tax-free to the
employee.
A licensee who informs an insured of inaccurate terms, benefits, or advantages of
any policy is committing which of the following violations? - ANSWER-
Misrepresention
what is the primary reason for buying an annuity? - ANSWER-Provide future
economic security
A common exclusion with Vision plans is - ANSWER-lasik surgery
INCLUDED: eyeglass frames, the examination, contact lenses
In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss
as all of the following EXCEPT - ANSWER-additional premiums
CORRECT: loss of earnings, out-of-pocket expenses, repair and replacement costs
All of these are considered a financial loss under Chapter 45 of the Michigan
Insurance Code EXCEPT for "additional premiums".
Which policy feature makes a universal life policy different from a whole life policy? -
ANSWER-A flexible premium schedule
An insurer must furnish to a claimant forms for filing proof of loss within ___ days
upon receiving a notice of claim. - ANSWER-15
A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a(n) - ANSWER-guaranteed insurability
rider
In which of the following processes will the insurer oversee the insured's hospital
stay to confirm everything is going according to schedule and that the insured will be
released as planned? - ANSWER-Concurrent review
